AdvertisementThe article examines the customs valuation framework applicable to leased machinery imported into India under the Customs Act, 1962 and the Customs Valuation Rules, 2007. The article concludes with practical recommendations on lease documentation, valuation support, GST compliance and handling valuation disputes. Why Customs Valuation of Leased Machinery Requires Special ConsiderationCross-border leasing of machinery and capital equipment has become a fairly common feature of Indian industry, particularly where companies seek access to specialised equipment without committing to its outright purchase. This article examines the legal position governing valuation of leased machinery under the Customs Act, 1962 and the Customs Valuation Rules, 2007, the distinction between operating and finance leases and its bearing on the valuation exercise, the procedural safeguards Customs typically insists upon, and the parallel GST implications that importers frequently overlook. Key Takeaways on Customs Valuation of Leased MachineryThe customs valuation framework does not treat leased machinery as though it had been sold.